Conformal Coatings Market Size, Share & Trends Analysis Report By Product (Acrylic, Epoxy, Urethane, Silicone, and Parylene), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global conformal coatings market size was valued at USD 930.89 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.9% from 2022 to 2030. The growth of conformal coatings depends on their use in various automotive, medical, consumer electronics, and aerospace & defense applications. With the increasing popularity of miniaturized circuitry and electronic devices, conformal coatings demand has witnessed a surge in the modern printed circuit board (PCB)-related applications.

It spreads as a thin polymeric film over the substrate at 25-250µm and conforms to the shape of the covered components, protecting them from extreme temperatures, chemicals, salt spray, and moisture. Major industry players are focusing on integrating their operations by venturing into raw material manufacturing and distribution sectors to gain a competitive edge in the market. Companies such as Dow Corning Corporation and Shin Etsu Chemical Company have entered into the distribution sector to cut down costs spent on third-party intermediaries.

The conformal coating demand in the U.S. was valued at USD 200.15 million in 2021. The high market share of the country is attributed to the presence of the well-established automotive, aerospace & defense, and electronics industry. The growing demand for durable coatings with superior corrosion resistance is expected to drive industry growth. Consumer electronics has been a significant driver contributing to the conformal coatings market growth in the U.S.

The growing adoption of wireless connectivity, technological advancements in consumer electronic equipment, and the growing popularity of wearable electronic devices are driving the consumer electronics application segment in the U.S., contributing to the conformal coatings market growth in the country. Moreover, during the COVID-19 pandemic in 2020, physical gaming events were halted, which extensively drove the demand for games such as Fortnite, a video game developed by U.S.-based Epic Games, Inc, which helped to further drive the demand for electronic devices and propel the conformal coatings market growth.

The U.S. aerospace industry is one of the largest aerospace industries in the world. The Federal Aviation Administration (FAA) has established Bilateral Aviation Safety Agreements (BASAs) in 47 countries to facilitate the trade of U.S.-made aerospace products. Such trade agreements of U.S. aerospace sector governing bodies to grow the aerospace products trade drive the demand for conformal coatings in the U.S.

Product Insights

Acrylic dominated the global conformal coatings market in the product segment and accounted for more than 47.0% of overall revenue share in 2021. Adjusting the viscosity of acrylic coatings is easy, making it an ideal compound for the preparation of various application grade-based coatings. Also, its drying process is significantly quicker compared to its counterparts. This property enables its use in a wide range of applications in the automotive and electronics industries.

In addition, the heat emitted by acrylics during the curing process eliminates the potential risk of damaging heat-sensitive components, thus promoting its conformal coatings market growth. Epoxy conformal coatings are highly resistant to solvents and possess dielectric properties, which are suitable for electronic device applications on printed circuit boards. These coatings are rigid and resistant to abrasion, owing to which they are utilized in the manufacturing of home appliances and circuit boards.

Urethane conformal coating is known for its good abrasion resistance, chemical resistance, and excellent moisture resistance. It is difficult to remove, which makes it suitable to be used in aerospace applications, thus helping in eliminating the problems associated with exposure of aerospace components to fuel vapors.

Application Insights

The consumer electronics sub-segment dominated the application segment for the global conformal coatings market and accounted for the largest revenue share of more than 44.0% in 2021. Consumer electronics have witnessed a growing popularity post the COVID-19 pandemic owing to the rising trend of miniaturized electronic circuit boards. These circuit boards are prone to dust, high temperatures, humidity, and other air-borne contaminants, driving the demand for conformal coatings.

The growing demand for consumer electronics has encouraged conformal coating manufacturers to launch new products to cater to the advancing market. For instance, in October 2021, Dow introduced DOWSIL CC-2588 Conformal Coating, a silicone-based coating developed to protect printed circuit boards (PCB) and electronic components. DOWSIL CC-2588 conformal coating cures at room temperature for reduced energy consumption and facilitates inspection using ultraviolet light, which can drive its demand in the consumer electronics segment.

The global focus on decarbonization is increasing due to rising environmental issues arising from gasoline-powered vehicles. This has driven international governments and automobile manufacturers to develop fuel-efficient hybrid and electric cars. The emergence of intelligent vehicles is expected to drive the demand for electronic components such as sensors, electronic devices for entertainment, and GPS in automobiles which can further contribute to the growth of conformal coatings to protect automobile electronic products.

Regional Insights

The Asia Pacific dominated the regional segment and accounted for an overall revenue share of more than 51.0% in 2021. The demand for conformal coatings in the Asia Pacific is driven by the high demand from key industries, including aerospace, automotive, consumer electronics, and manufacturing industries. According to a press release by Airbus in February 2022, the Asia-Pacific region is anticipated to require 17,620 new passenger and freighter aircraft. This is expected to be driven by the growing population in the area.

Furthermore, as per Airbus, the cargo traffic in Asia-Pacific is expected to increase at 3.6% per annum, leading to a doubling in air freight in the region by 2040, thus positively impacting the market for conformal coatings in the area. North America has witnessed a growing demand for advanced electronics, including GPS systems and other related products in the automotive industry. The e-commerce industry has seen an upward trend in the region, resulting in increased sales of commercial vehicles in the area to cater to this industry.

According to the International Air Transport Association (IATA), North American carriers showed a fast recovery due to vaccine rollout and allowed vaccinated travelers in the region in November 2021. The rebound in passenger traffic has encouraged aircraft carriers to order new aircraft, resulting in increased aircraft sales in the region. Conformal coatings are used to protect the operating devices from vibrations, extreme temperatures, and shocks. The growing market for the aerospace sector in the U.S. is expected to push the conformal coatings market to grow upwards.

Key Companies & Market Share Insights

The key players operating in the global conformal coatings market are Henkel AG & Co. KGaA, Chemtronics, Shin-Etsu Chemical Co., Ltd., Dow, and H.B. Fuller Company, along with a few media and small regional players. Established players such as Henkel AG & Co. KGaA are investing in startups related to conformal coatings, which can further strengthen their position in the market.

For instance, in October 2020, Henkel AG & Co. KGaA announced an investment in Actnano, an advanced materials start-up company headquartered in Massachusetts, U.S. Actnano provides tailored conformal coatings technology for the protection of printed circuit boards in a variety of applications in growing electronics segments. Some of the prominent players operating in the conformal coatings market are:

• Chase Corp

• Electrolube

• Europlasma NV

• MG Chemicals

• KISCO LTD

• Dymax Corporation

• ALTANA

• ACC Silicones Limited

• CSL Silicones Inc.

• Aalpha Conformal Coatings

Conformal Coatings Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global conformal coatings market report based on product, application, and region:

• Product Outlook (Revenue, USD Million, 2019 - 2030)

  • Acrylic

  • Epoxy

  • Urethane

  • Silicone

  • Parylene

• Application Outlook (Revenue, USD Million, 2019 - 2030)

  • Consumer Electronics

  • Automotive

  • Medical

  • Aerospace & Defense

  • Others

• Region Outlook (Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa